Ladies and gentlemen, good day, and welcome to the Tips Music Limited Q2 FY '27 Earnings
Conference Call hosted by MUFG Intime. As a reminder, all participant lines will be in the
listen-only mode, and there will be an opportunity for you to ask questions after the presentation
concludes. Should you need assistance during this conference call, please signal an operator by
pressing star, then zero on your touchtone phone. Please note that this conference is being
recorded. I now hand the conference over to Ms. Devanshi Dadhich from MUFG Intime. Thank
you, and over to you, ma'am.
Devanshi Dadhich:
Thank you. Good evening, ladies and gentlemen. I welcome you to the Q2 and H1 FY '27
Earnings Conference Call for Tips Music Limited. To discuss this quarter's performance, we
have from the management, Mr. Kumar Taurani, Chairman and Managing Director; Mr. Girish
Taurani, Executive Director; and Mr. Sushant Dalmia, Chief Financial Officer. Before we
proceed with the call, I would like to mention that some of the statements made in today's call
may be forward-looking in nature and may involve risks and uncertainties.
For more details, kindly refer to the investor presentation and other filings that can be found on
the company's website. Over to you, sir.
Kumar Taurani:
Good evening, everyone, and welcome to Q2 and H1 FY '27 Earnings Call of Tips Music
Limited. Wishing all of you a very happy Navratri and a very happy Diwali in advance. We have
successfully completed the buyback of shares amounting to INR44.44 crores through open
market buyback. During this quarter, the Board has declared an interim dividend of INR6.5 per
share. With that, I would now like to hand over the call to Girish for his comments. Over to you,
Girish.
Girish Taurani:
Thank you, Kumarji. Good evening, everyone. During the quarter, we continued to see strong
engagement across our new releases as well as our catalog content, supported by both our digital
and non-digital segments. During the quarter, we released 73 songs, comprising of 40 film songs
and 33 non-film songs. Our new releases in general have received a strong response from the
listeners. In particular, our Punjabi film music album, Ishqnama, has crossed 100 million views
on YouTube. Our recreated song, Aankhon Se Tune 2.0 from our catalog released during the
quarter and has crossed 66 million views on YouTube.
We continue to witness sustained traction in our new releases with Chunnari Chunnari - Let’s
Go! released in Q1 FY '27, which has now crossed 100 million views on YouTube. And the
female version of Tere Paas Main from the film album Main Vaapas Aaunga continued to
perform strongly on Spotify and all music streaming platforms. Our catalog track Tera Naam
Doon from the movie Entertainment gained significant traction on Instagram and crossed 1
billion views on Instagram. Our YouTube subscriber base is now at 164.5 million and total views
across our content library has surpassed 54.3 billion, demonstrating the growing popularity and
reach of our content across platforms.
With that, I would now like to hand over the call to Sushant to discuss the financial performance
in greater detail. Wish you all a very happy Navratri and happy Diwali in advance.
Page 2 of 14
Tips Music Limited
October 15, 2026
Sushant Dalmia:
Thank you, Girish, and welcome, everyone, to the Q2 and H1 FY '27 earnings call. I'm pleased
to present the key financial highlights of the quarter gone by. Revenue for Q2 FY '27 stood at
INR120 crores as compared to INR89.2 crores in Q2 FY '26, representing a year-on-year growth
of 35%. Content cost for the quarter stood at INR26.18 crores, which almost doubled as
compared to last year. Operating EBITDA was INR84.64 crores, reflecting a Y-o-Y growth of
25% with an EBITDA margin of 70.5%. Profit after tax stood at INR65.5 crores, representing a
growth of 23% over the previous year quarter, while PAT margin for the quarter was 54%.
For the first half FY '27, revenue came at INR227 crores, reflecting a growth of 28% over the
corresponding period last year. Please note, during the 6 months, the content cost was at INR71
crores, which is front-loaded, and we expect the content cost for the full year to be in the range
of INR90 crores to INR100 crores only. Profit after tax for the period stood at INR109 crores,
representing a Y-o-Y growth of 11%. With that, I conclude my opening remarks and open the
floor for questions. Thank you.
Moderator:
Thank you very much. The first question is from the line of Kavish Parekh from 360 ONE
Capital. Please go ahead.
Kavish Parekh:
Hi, Kumarji. Hi, Sushant. Thank you for the opportunity and congratulations on a very strong
set of numbers. Sir, first question pertains to the growth. We have seen periods of strong growth
in the past as well. Could you explain what drove growth this quarter, 35% Y-o-Y, any breakup
in terms of contribution from digital versus non-digital revenues, how sustainable do you think
this momentum is?
And a follow-up question to growth is on our platform deals, could you update us on negotiations
with YouTube for Shorts monetization and Instagram Reels? Has the Warner partnership sort of
strengthened our negotiating position, particularly on the pricing front, which aided growth this
quarter?
Sushant Dalmia:
Hey Kavish, this is Sushant here. On the question of YouTube Shorts, the deal is still under
negotiation. It's not been concluded. We'll update once the deal is done. On the Warner, the
partnership continues as per our expectation. In terms of growth for this quarter, it was driven
by both new releases and our catalogue. And, both digital and non-digital platforms contributed.
Digital contribution for the first half was 73%, as we have mentioned in the presentation.
Kavish Parekh:
Understood. Second, on the content spend, you did allude that in your opening remarks that you
maintain your full-year guidance of about INR90 crores. First half, we've seen spends of about
INR70 crores. Does that imply second half will again not really see any meaningful Hindi
content releases and growth in 2H will have to depend on catalogue? Is that a fair understanding?
Sushant Dalmia:
No, primarily, the new releases was more front-loaded. So, it would continue to support the
growth in the H2. And on the content piece, the H2 would be lighter.
Kavish Parekh:
And any names that you can share of the movies which are planned to be put out in 2H?
Sushant Dalmia:
It would be smaller films and non-film music. Not bigger names.
Page 3 of 14
Tips Music Limited
October 15, 2026
Kavish Parekh:
Understood. And lastly, what explains the sharp pickup in advertising spends this quarter despite
no major release in 2Q?
Sushant Dalmia:
It was primarily driven by new releases. See, we had a very front-loaded new releases in first
half. So the promotional cost was primarily driven by the new releases and you have to see
promotion as part of my content cost.
Kavish Parekh:
No, I agree with that. But I think two of the largest movies for which we ended up paying a huge
sum for the content per se came in 1Q. 'Main Wapas Aaunga' was one of them. So, the
advertising spends that we've seen in 2Q, also pertain to those movies, the ones that released in
June, or is this some other content?
Sushant Dalmia:
It would be towards that also, yes, the content was released towards the mid of the June, so the
promotional activities continued.
Kavish Parekh:
Understood. That's it from my side. Thank you.
Moderator:
Thank you. Our next participant is Nitin Jain from Fairvalue Equity Advisory. Please go ahead.
Nitin Jain:
Yes, thank you for the opportunity. My first question is on the digital revenue share. So, for H1,
the number is around 73% and for Q1, we were at 75%. So Q2 is probably lower at 71%. So
what I wanted to understand is why this variation Q-on-Q and what is the impact on profitability?
And also, what is your guidance for the year for this metric?
Sushant Dalmia:
Nitin, the digital revenue would be in a range of 70% to 75%, and difficult to give a proper
reasoning into 1% to 2% variation. But the growth is more driven both by digital and non-digital
segments.
Nitin Jain:
And in terms of profitability, so digital would be more profitable? Okay.
Sushant Dalmia:
Because our content budgets and the fixed costs are more or less in line, so, no impact on
profitability.
Nitin Jain:
Great. And my next question is on the subscription-based revenue share. Any comment for this
quarter? Last quarter, I think you mentioned it was 10% to 15%.
Sushant Dalmia:
It is in that range only, Nitin.
Nitin Jain:
Okay, it continues to be in that range. Okay. Thank you.
Moderator:
Thank you. The next question is from the line of Akshay Kolekar from Dalal and Broacha. Please
go ahead.
Akshay Kolekar:
Thank you for taking my question. So my first question is in today's media interview, you
indicate that revenue and PAT growth guidance has been upgraded by 2 percentage point to 3
percentage point from earlier guidance of 20%. Given that H1 FY27, the revenue growth is
Page 4 of 14
Tips Music Limited
October 15, 2026
already 28% year-on-year, so achieving the annual growth rate of let's say 22%, 23% will require
only 19% of growth in H2 FY27.
And historically, we see that the H2 is generally stronger than H1. So against this backdrop, do
you believe that revised guidance remain conservative or should we expect H2 growth to be
moderately meaningful compared to H1? And also, can you elaborate on key assumption behind
the revised revenue and PAT growth guidance? Yes, that's my first question.
Sushant Dalmia:
H1 has been stronger for us. We have grown by around 28%. We would like to be conservative
in our guidance. You are right to some extent that H2 could be stronger, given we are entering
the festive season, but we would continue with our conservative guidance. It's better to underpromise and over-deliver.
Akshay Kolekar:
So the guidance will be 22% to 23%, correct? Revised.
Sushant Dalmia:
We would exceed our 20% guidance. We don't want to put a specific number to it.
Kumar Taurani:
For time being, you consider it as 20%.
Akshay Kolekar:
Understood. So my second question is on you have indicated in Q1 FY27 that the content
investment guidance is around INR90 crores to INR100 crores for overall FY27, against which
the company already spent around INR70 crores to INR71 crores in H1. There's a significant
investment already made in content. Do you intend to maintain the earlier guidance or you are
considering to increase the content investment target?
Sushant Dalmia:
It will be maintained for the full year at between that range of INR90 crores to INR100 crores.
The content investment in first half was front-loaded and the second half would be much lighter
in terms of the content cost.
Akshay Kolekar:
Okay, understand. The last question is on other than music, like does the company have any plan
to diversify in other segments like artist management or live events? Because these segments
has growing significantly. Or will you continue to focus exclusively on core music business?
What are your views on this?
Kumar Taurani:
Our focus is absolutely on new music. And that artist management is really a lot of trouble and
you have to really take care of artist so much, and then there's a commitment, we have to do so
many songs, and we don't believe in all that. We believe we will have a short-term kind of a
contracts with artist, two songs, three songs like that, and we are really happy with that.
Akshay Kolekar:
Okay, understand. Thank you. That's it from my side.
Moderator:
Thank you. The next question is from the line of Sanidhya Agarwal from Unicorn Assets. Please
go ahead.
Sanidhya Agarwal:
Hi Kumar sir, hi Girish. Congratulations on successfully completing the buyback. Another great
set this quarter. Really impressed by the number of songs that we have released this quarter.
Page 5 of 14
Tips Music Limited
October 15, 2026
Even we didn't have any large films as such, but we had few smaller films and I think individual
musical releases in multiple, so that was really heartening to see. And many of them touched
even 100 million views across platforms, so it was really good to see that.
So, it shows that management is like really making conscious call to invest for future. I just
wanted to highlight that market sometimes doesn't fully appreciate that the entire content cost
that we expense in the same quarter that we release the music, unlike most of the industry players
which spread it over a year. I think sometimes market get even jittery. But how I would like to
understand how management thinks about that thing.
And also, should we like really think that you are investing for future because that's what really
drives the valuations as such if I were to say for the market? Like we are seeing today Indian IT
companies were having hard time because of AI and stuff, because they didn't invest in previous
times for tapping the next wave, you can say. So, how is Tips willing the same approach? How
are we focusing on longevity rather than optimizing margins for quarter-on-quarter basis?
I think Kumar sir, we should really acknowledge that today, the company is enjoying the fruits
that you acquired the music really cheap in '90s and early 2000s, and that catalog has done
wonderfully well for the company.
I think Girish also acknowledge that if we do not invest into songs today that are relatively for
the newer generation per se, with the newer generation cutting more today and maybe they would
eventually end up listening those songs for the next 20, 30 years, maybe even more.
So the company wouldn't be like because, of course, the songs that we already have in the library
are doing good, but there is obviously a life cycle for the entire content that we already have.
How are we really focusing on not looking in near term, but rather on longevity of the company?
That would be my first question.
Kumar Taurani:
Yes, Sanidhya. See, we are very much focused on music business. And whenever we acquire
any new content, we are very, very careful, and we only deal with the people who are likeminded and maybe they can take our advice on music, how to create which kind of song we
should give them. And even now, our catalog is performing very, very well.
So every producer, they are really like to tie up with us, and we give them 1 or 2 songs in their
film to recreate those songs, and they are doing well. So I think we are in a very good place at
present. We are talking to a few more producers. If we can do business with them, we can sign
their audio rights and which we will announce very soon. So I think everything is fine. Our
catalog is doing well.
And I think next 15, 20 years, at least I feel we are very, very safe. We do not have to think twice
what's going to happen. I think many new things will happen to our industry like AI and many
other platforms will come, business will change. People will do subscription, that small content,
short length content will also get proper monetization that public performance that shows artists
are singing, performing.
Page 6 of 14
Tips Music Limited
October 15, 2026
So I think a few months back, Prime Minister said we want to see INR50,000 crores business
for events. So you imagine if there’s a business worth INR50,000 crores, and even 5% to 10%
of that is attributed to music, what would a show be without music? Then we would receive
INR5,000 crores, which is the same total figure INR4,000-INR5,000 crores that we are talking
about today.
Spotify has issued some guidelines, they have world knowledge, they see in 10 years' time, how
have they progressed in the global market. They see in India 15 crores people will be subscribers.
If they pay INR100, how much that should be. So I think we have a very solid future in music
business. I think we are just waiting to explore. I think it hasn't yet fully explored. It will, though.
Thank you.
Sanidhya Agarwal:
Okay. Second question would be so let me put it this way. So if I see four quarters from today,
I am not going quarter-on-quarter. I am just saying four quarters from today, that is H2 of this
year and H1 of next year. If I do a rough estimate on this quarter's annual run rate, we will do
somewhere between INR500 crores to INR550 crores of revenue in next two quarters.
If you say 20% to 25% or 22%, whatever number you want to put it, I think INR100 crores and
INR130 crores, something like that would be the number that we will have for us to invest in the
content cost, basically. That's a very meaningful pool.
That's what I understand from this. And like INR100 crores, INR130 crores is like a good amount
that we can actually buy some good music rights, something fresh that's coming to the industry
rather than just focusing on remake of the older songs or the catalog. Of course, that is important
because that gives a push to our catalog as well. That is currently driving the growth very fast.
And I think it's done wonders to the company.
But how would you like to like give some vision some bifurcation, how do you see the split of
the content cost like this pool of more than INR100 crores that we will have for ourselves in the
next four quarters in terms of what would be the amount that you will be spending on the fresh
music that's coming to the industry for the relatively new generation, you can say versus what is
already there. Yes, go ahead.
Kumar Taurani:
We are investing in new content. There is a film called Main Vaapas Aaunga, all new songs by
Rahman, we have not given them. And wherever we are giving our song, it's only one song or
maximum two songs. So we are not giving all the songs. If film has five songs, maybe one song
will pick up from old catalog. The rest four songs, five songs, six songs are all new. Plus we had
this one Punjabi film Ishqnama music is doing so well, B Praak, Jaani, in that all seven new
songs are there. So we know that we have to focus on new songs, we want to secure our future
too.
And also, I have always guided. You see, my budget is around top-line, 22%. We have to invest
in content. But if we ever get the opportunity that we're getting really good content and the
budget is 25% or 28%, so we can explain to people like you, that the content cost has increased
here.
Page 7 of 14
Tips Music Limited
October 15, 2026
And it's a hit in profitability. Because also, you have to consider that TIPS is the only company
which writes off their entire content cost in the same year. So that was a big thing with us. But
still, I feel the content that we want, we never leave. Even Ishqnama, when we heard that their
content is available and we're getting a little expensive, but we acquired it because I knew that
team is so good and they were keen to do business with me. They pay on time. Whatever we
commit, we deliver 100% promotion-wise, availability-wise.
So, we have a priority, we have our own things. I think don't worry about the content. We know
what we are doing. And at present, we have already told all of you 20% top line, 20% bottom
line, 20%- 22% will invest in content. We are going with that. But let's see, let one more quarter
go, what happens, we'll brief you then in the next call.
Sanidhya Agarwal:
Yes, and I would really like to close it by saying I think there are enough and more investors in
the company and in the market who would like to see you grow rather than focusing on
operational numbers quarter-on-quarter. Understand there is volatility in terms of stock price, I
think we can all look over it and rather focus more on what the company is actually doing.
And I think the songs were really good this quarter and I hope we continue to do that rather than
just thinking that, okay, 20% to 22% of content cost only. I think we are fine even if you invest
more if the top line grows, the profit grows, and the future is more better. I think anyway we are
doing good.
Kumar Taurani:
Sanidhya, I myself, my family has 64% of this company, we hold. So don't worry, we are on the
job, very focused, and we want we should come back to 30% of growth, the earlier our
projections was. But the amount is getting increased. The amount of 30%, if you want to do 30%
in INR200 crores, you have to do INR60 crores. And if you want to do 20% in INR375 crores,
you have to do 75%. So that's why we are very cautious. And we want to speak less and do more.
Sanidhya Agarwal:
Exactly.
Kumar Taurani:
It doesn't mean that if we have said 20%, we will focus on 20%. If it is 30%, then we will do
30%. And the entire focus is on that. The entire team is working hard. From 10 am to 7pm-8 pm,
we are working hard. Don't worry about that.
Sanidhya Agarwal:
Exactly. Deeply appreciate it. Thank you.
Kumar Taurani:
Thank you. Thank you.
Moderator:
Thank you. The next question is from the line of Ravi Naredi from Naredi Investment. Please
go ahead.
Ravi Naredi:
Yes, sir. Thank you. Shri Taurani sir, you are running this company on best professional ethics.
We may say we are fortunate we become shareholder of our company since seven years back,
and make our wealth. Buyback and good dividend pay only any good reputed company can do.
You are doing best for us. Sir, how much revenue we earned usually from old song before 2000
or after 2000? Can you give some bifurcation?
Page 8 of 14
Tips Music Limited
October 15, 2026
Kumar Taurani:
Yes, thank you, Ravi ji. Sushant will talk to you. We will give you and tell you.
Ravi Naredi:
Okay.
Sushant Dalmia:
Hello, Ravi ji. Around 85% of our revenue comes from releases which are three years and before,
and 15% comes from releases in over the what we have acquired content over the last three
years.
Ravi Naredi:
Last three years. 85% within three years and 15% last more than last three years, right?
Sushant Dalmia:
85% from the content which we acquired 3 years back…
Kumar Taurani:
Up to 3 years back.
Sushant Dalmia:
Up to 3 years back, and 15% from the content which we acquired within that three years.
Ravi Naredi:
Okay. Reverse. And sir, Taurani ji, I would like to ask, if you want to give reply, how our two
film songs which we have bought in June first quarter, Hai Jawani Toh Ishq Hona Hai and Main
Wapas Aaunga, how this songs perform, can you tell some commentary?
Kumar Taurani:
Ravi ji, some have performed well, some films and some songs. However, as I've mentioned
before, the landscape today is different from what it used to be; due to intense competition, the
costs have become very high. We base our content investments on the projection that we will
recover our capital within 4 to 5 years if that happens, we consider it a success.
Another positive aspect of our approach is that if we acquire content for, say, INR50 crores or
INR100 crores in a given year, we write it off within that same quarter. This means that even if
a title or its songs don't perform well, we aren't burdened by any long-term financial adjustments
or write-downs. We don't have any headache on our head.
It is highly unlikely that none of the songs will perform well; surely, some will be successful.
We are very cautious in this regard. We won't suddenly find ourselves in a situation, say, 5 or 7
years down the line where we are faced with a massive write-off, such as INR200 crores or
INR500 crores, due to a sudden, large-scale loss. We simply don’t have any such exposure.
We are absolutely clean, everything gets switched off. And touch wood, on the contrary, that
which is ours write-off, even if we do it, the revenue generated from it contributes to our profits.
Ravi Naredi:
Yes. You are doing a wonderful job. I again salute on your working. Thank you very much.
Kumar Taurani:
Thank you.
Moderator:
Thank you. The next question is from the line of Rohan Nagpal from Helios Capital. Please go
ahead.
Rohan Nagpal:
Hi. Congratulations on the strong set of results. Am I audible?
Kumar Taurani:
Yes.
Page 9 of 14
Tips Music Limited
October 15, 2026
Moderator:
Yes, you are.
Rohan Nagpal:
Yes. So, on this strong revenue growth that we've delivered this year, are there any one-offs or
is it just part of the trend that we are seeing?
Sushant Dalmia:
Hi. Hey Rohan, there's no one-off in this revenue. The growth is coming both from digital and
non-digital segments.
Rohan Nagpal:
Okay. And within growth across digital and non-digital, if you can segment, how much of the
growth would you say is coming from increasing consumption and how much of the growth
would you say is coming from increasing realization that we are seeing per stream, or however
you'd like to look at it?
Sushant Dalmia:
It would be primarily volume-driven growth. Marginally, it could be related to subscription, but
the subscription prices is also growing at a healthy pace. But it would be primarily volumedriven growth.
Rohan Nagpal:
Understood. Okay, fair enough. And in terms of listening share within the industry, do you have
any estimates of what is your share of total streams and how is that trending?
Sushant Dalmia:
We generally provide that in terms of overall revenue market share, we would be around that
8% to 10% of the industry.
Rohan Nagpal:
Okay. Understood.
Rohan Nagpal:
Understood. Okay. Thank you. So, the conclusion is that the streaming volume has increased
35% year-over-year for Tips? So that is a conclusion, right? Like, 30%, 35% growth in the
number of streams this quarter.
Sushant Dalmia:
Yes.
Rohan Nagpal:
Understood. Okay, thank you.
Moderator:
Thank you. The next question is from the line of Saket Mehrotra from Tusk Investments. Please
go ahead.
Saket Mehrotra:
Thank you. Am I audible?
Moderator:
Yes, sir.
Saket Mehrotra:
Sir, congratulations to the team and everyone for these fantastic numbers. I had a couple of
questions.
Sushant Dalmia:
Thank you.
Saket Mehrotra:
And I'm sorry if it has been addressed before. Is paid subscription now like a significant part of
our revenue pool or is it still early to comment on that?
Sushant Dalmia:
Saket, in terms of paid subscription, it would be around 10% to 15% of the digital pie.
Page 10 of 14
Tips Music Limited
October 15, 2026
Saket Mehrotra:
Okay. And in terms of our content cost outlook for this year, we still are at 20%-22%?
Sushant Dalmia:
Yes, around that INR 90 to INR100 crores for the full year.
Saket Mehrotra:
Okay. Thank you. Thank you so much, and wishing all the best for the future.
Moderator:
Thank you. The next question is from the line of Sagar Jethwani from PhillipCapital PMS. Please
go ahead.
Sagar Jethwani:
Yes, thank you for the opportunity, sir. And sir, what is the reason for the delay in YT Shorts
deals? It's been getting delayed by around 3 to 4 months. Do we expect it happening in Q3? That
is my first question.
Kumar Taurani:
Yes. It will get done. Most of it should be completed this quarter, but these negotiations do take
some time.
Sagar Jethwani:
Okay, it is primarily because of the negotiations, you're saying?
Kumar Taurani:
Yes.
Sagar Jethwani:
And once it goes through, will it be a significant contributor?
Kumar Taurani:
Wait for sometime.
Sagar Jethwani:
Sure. We will get back on this in next quarter. Any other key deals or renewal deals with the
OTT players that are up for renewals in H2?
Kumar Taurani:
No, not really. Nothing is there. Everything is sealed.
Sagar Jethwani:
Okay. And any key films in pipeline in H2 and beyond and maybe you can tell us that how many
films are under the discussion stage, the number of films I'm talking about, any key films that
you would like to point out?
Kumar Taurani:
We want to release at least five films-six films a year, and four-five should be in Hindi and twothree in other regional languages. We'll achieve that.
Sagar Jethwani:
Okay. And is there any plan to increase the price of per paisa streaming with YouTube? When
was it last revised and on what can be the driver of it?
Sushant Dalmia:
The revenue share is there, and that is currently stable. So, we don't see any anything that it will
increase further. I think it should be at this current level in terms of the revenue share percentage.
Sagar Jethwani:
So generally, what is the driver of it? Suppose say, for example, let's say it could be around
INR0.05 per streaming, for example, and suppose it has to go to INR0.08 to INR0.10 paisa per
streaming, so what are the reasons or what are the drivers of it? Just wanted to understand that.
Page 11 of 14
Tips Music Limited
October 15, 2026
Kumar Taurani:
No, it won't go to INR0.08, it will remain INR0.05. Only we have to see we will we should
release our good new releases and we should support our catalogue and we should promote our
repertoire such a way so they can perform better. If we are doing say 400 million streams, so
how we can achieve 600 million, 800 million like that. We have to increase our numbers. And
we constantly do that.
Sagar Jethwani:
But once this volumes goes up, the listenership volumes goes up, can it drive per paisa streaming
as well?
Kumar Taurani:
No, amount won't change. If we are doing 1 lakh streams and we are making say INR0.05 paisa,
so what amount will be? And if we are doing a 2 lakh stream, so amount is same, INR0.05 paisa,
but gross amount will be double.
Sagar Jethwani:
Okay, understood.
Sushant Dalmia:
Sagar, the driver would be the paid subscription picking up.
Kumar Taurani:
Yes.
Sushant Dalmia:
So over there the per stream rates are higher.
Sagar Jethwani:
Okay. And this paid subscription, broadly, to my understanding, it must be purely urban-centric,
right? I mean, is there any data that suggests that rural is also picking up, any color on that?
Kumar Taurani:
These OTT companies, their focus on the city-based, but we are encouraging them. There was a
service called ringback tone, I think around 20 years back where the telephone mobile companies
used to make around INR5,000 crores from subscription of that service to enjoy that service.
And that time, all India and that was only 8% of mobile subscribers. So, I think it's a big
opportunity. We are constantly pushing these companies, OTT companies, to go on a rural places
also, Tier 2 cities, Tier 3 cities, Tier 4 cities. So, we are pushing them. It will happen.
Sagar Jethwani:
Because that's a mass market as well anyways. Yes, that was So lastly, any thoughts on the new
CEO hiring? Are we going aggressive or is it still working out well?
Kumar Taurani:
Yes, we are very aggressive on that. But in our industry, I am not finding a suitable person, so
still search is on. As we get, we will immediately appoint.
Sagar Jethwani:
Good to know that. I just want to squeeze one last question. Sir, so, basically, the taste of the
songs have been eventually changing. How are we relating to the listenership of current Gen Z
population, how are we meeting the evolving needs of the music?
Kumar Taurani:
Sagar, I am listening this question for last 35-40 years that music is changing, music is changing.
But it's the same, romantic songs, sad songs, party songs. They do all run first. So I don't think
that if a song is good, then Gen Z will also like, millennials will also like, senior citizens also
like. So we have to just get focus on a good quality song.
Page 12 of 14
Tips Music Limited
October 15, 2026
Sagar Jethwani:
Understood. All the best, sir. Thank you for all the questions, answering all the questions.
Moderator:
Thank you. The next question is from the line of Kavish Parekh from 360 ONE Capital. Please
go ahead.
Kavish Parekh:
Hi, thanks for the follow-up. So my understanding is that we negotiate directly with YouTube
for Shorts. How does this work for Instagram Reels? Is Warner solely responsible for
negotiations or do we also have a say, especially on the pricing front?
Kumar Taurani:
No, in with Warner, we are under Warner umbrella. They negotiate entire world deal and
whatever per view or per creation, whatever money they get, they pass on to us.
Kavish Parekh:
And are the contracts with between Warner and the end entities also renegotiated annually?
Sushant Dalmia:
Kavish, it could be on a two-year or annual basis. It depends on platform to platform.
Kavish Parekh:
Understood. And could you just remind me when does our renewal for renegotiation start with
Warner?
Sushant Dalmia:
Warner deal will come up for renewal next year, FY28.
Kavish Parekh:
Okay, thanks so much.
Moderator:
Thank you. The next question is from the line of Harshh K Shah from JM Financial PMS. Please
go ahead.
Harshh K Shah:
Yes, thanks for the opportunity. Couple of questions from my side. Firstly, Sushant, could you
help me out with the data point as to what was the contribution from Warner in H1 FY27 and
what was it in H1 FY26?
Sushant Dalmia:
Harshh, we don't share that data, but in that range of 25%-30%.
Harshh K Shah:
So, I mean, Yes, so has there been any increase say if we have to compare H1 to H1, is that a
case?
Sushant Dalmia:
There would be. There is an increase.
Harshh K Shah:
Okay, sure.
Sushant Dalmia:
As you have seen our revenue growth for the first half, so it has been driven across all the
platforms.
Harshh K Shah:
Sure. Secondly, it's an accounting question. So if I look at the balance sheet of last financial
year, there was this item within non-current liabilities which is kind of has a subsection known
as other non-current liabilities, which has an amount of INR18-odd crores. If I look at the current
Page 13 of 14
Tips Music Limited
October 15, 2026
balance sheet, that amount is kind of not there, which I acknowledge that even in March 2020
balance sheet it was not there.
My understanding was that some part of the Warner revenue wherein they give the advance is
kind of bifurcated between current liabilities and non-current liabilities. Has there been any
change in that or any reclassification that has happened? Because there is nothing in the other
non-current liability part.
Sushant Dalmia:
So your understanding is right. There is a bifurcation in non-current and current. And as and
when the revenue is booked, the amount moves from this bucket. And as and when we receive
the advance, it would be classified, if it is more than 12 months, it would be classified under
non-current. And if it is less than 12 months, it would be classified under current. But it would
consist of advances from Warner, SMP and others
Harshh K Shah:
Okay. So then does that mean is that in the first half of this financial year we have not yet
received any advance from Warner? It is just the revenue recognition that has happened of the
advance received previously?
Sushant Dalmia:
It also could be that we have received the advance and that has moved to current and the earlier
advances have been booked in revenue.
Harshh K Shah:
I see. Sure. That is it from my side. Thank you.
Moderator:
Thank you. Ladies and gentlemen, due to the time constraint, that was the last question for today.
I would now like to hand the conference over to Ms. Devanshi Dadhich for the closing
comments. Over to you.
Devanshi Dadhich:
I would like to thank the management for taking the time out for this conference call today, and
also thanks to all the participants. If you have any queries, please feel free to contact us. We are
MUFG Intime Private Limited, Investor Relations Advisors for Tips Music Limited. Thank you
so much.
Management:
Thank you, everyone.
Management:
Thank you.
Moderator:
On behalf of TIPS Music Limited, that concludes this conference. Thank you for joining us and
you may now disconnect your lines.
Page 14 of 14
